RIT Retirement Savings Plan Loan Program - Summary of Provisions
The following is a summary of loan provisions for the RIT Retirement Savings Plan:
General Purpose and Primary Residence
Loans are available for active employees only.
Loans are available from your 403(b) plan account with Fidelity. If you have an existing loan at TIAA, your account balance and loan balance are considered in calculating your Fidelity loan. If necessary, you can transfer funds from TIAA to Fidelity, subject to the rules of your TIAA-CREF contract; contact Fidelity directly at 1-800-343-0860/V for help with a transfer.
Call Fidelity at 1-800-343-0860/V to request a Loan Application. Please note that loan applications require spousal consent, thus the application will be mailed to you in order for you to obtain the appropriate information, if applicable. Complete the application in its entirety, and return it to Fidelity Investments at the address indicated.
After Fidelity receives a completed Loan Application, it takes 3 to 5 business days to issue the loan check; the check will then be mailed by U.S. Mail, which may add an additional 2 to 7 days.
Loan Outstanding and/or Received
You may have 2 loans outstanding at one time. This includes loans taken from your TIAA account prior to July 3, 2012 that have not been repaid (included defaulted loans).
Minimum Loan Amount
Maximum Loan Amount
Lesser of 50% of your Fidelity account balance minus your current loan balance, or $50,000.
You pay the loan back to your account, plus interest, through after-tax payroll deductions.
Minimum Repayment Term
Maximum Repayment Term
60 months for General Purpose; 180 months for Primary Residence.
Interest Rate for the Term of the Loan
Prime rate as of the first business day of the month that the loan is requested + 2% (e.g., if Prime Rate is 3.25%, the loan interest rate would be 5.25%†).
Quarterly Maintenance Fee†
Evidence and Terms of a Loan
Fidelity Investments will include the terms of the loan with the loan check. Once the check is cashed, you have committed to the terms of the loan.
Available Source for Loan
Call Fidelity® Retirement Services to choose the funds from which to take your loan. The loan will be taken pro rata across all funds in your account.
Loan repayments are applied according to the investment direction you have selected for your future contributions.
Repayment Option After Separation
Once you have terminated RIT employment, you may continue to repay your loans via Automated Clearing House (ACH). The repayments will draft from a checking or saving account.
Quarterly Loan Statements
Provided as part of the Retirement Savings Plan quarterly statement.
If you fail to repay your loan (based on the original terms of the loan), it will be considered in "default" and treated as a distribution, making it subject to income tax and possibly a 10% early withdrawal tax penalty. Defaulted loans may also impact your eligibility to request additional loans. Ensuring that your loan is repaid on time is your responsibility.
Be sure you understand the plan guidelines and impact of taking a loan before initiating a loan from your plan account. For more information on loans, please call Fidelity Investments at 1-800-343-0860/V and 1-800-259-9743/TTY, Monday through Friday, 8:30 a.m. to midnight ET.